Energy & Water

The burgeoning relationship between U.S. energy companies and Mexico, since Mexico opened its energy market, is in the cross hairs of a proposed border wall.

Which companies will be impacted? Oil, gas, and power companies

What type of proejcts would be impacted? 

• border-crossing transmission lines
• trade openings for new wind and solar power resources
• the flow of U.S. products and services to Mexico
   

Politico | How Trump’s wall will hurt U.S. energy companies

The Top 5 reasons solar isn’t seeing rapid growth in Texas?

• no one wants to buy solar energy
• 5 major solar projects ahev been delayed or canceled
• low natural gas prices
• no state economic incentives for solar
• wind costs 15% less than solar

FuelFix | Why solar power is still waiting for ‘liftoff’ in Texas

What? Residents Against Flooding group, an area non-profit, are suing The City of Houston and TIRZ 17

Why? The Residents say the City and TIRZ “violated constitutional laws by failing to develop retention basins to collect floodwaters in heavy rain events”

How long do the residents claim the problem? Since 2003 a study on the retention basins has shown the need for retention ponds to prevent flooding

Wasn’t there another suit about this that’s been kicked out by the courts? Yes, the White Oak bayou suit which the Texas Supreme Court threw out in June

How is this suit different? No monetary damages are sought, only that the the TIRZ and City remediate the flood problem by building necessary retention ponds and flood prevention works

Your Houston News | Residents raising funds for flooding lawsuit against Houston, TIRZ

• 500 companies operating in Texas solar value chain
• In 2016 solar capacity in Texas is estimated to exceed 1000 MW
• By 2021, solar capacity in Texas will be 4,600 MW more than 80% of it being utility-scale

Utility Dive | Swollen solar pipeline could make Texas 2nd largest utility-scale market in US

Population: 120 Million (Mexico)  |  27 Million (Texas)

Oil Proeduction: 2.5 Million Barrels (Mexico)  |  3 Million (Texas)

Pipeline Miles: 6,000 miles (Mexico)  |  400,000 (Texas)

Midland Reporter Telegram | Sitton: Trans-Pecos Pipeline ‘vital’ to Texas and Mexico

​

Railroad Commissioner Ryan Sitton offers 3 reasons the Trans Pecos pipeline is vital to Texas energy:

• Texas is a larger energy market than Mexico
• Pipelines are critical to bring product to market
• Mexico is expanding electricity production with natural gas that Texas has in spades

Midland Reporter Telegram | Sitton: Trans-Pecos Pipeline ‘vital’ to Texas and Mexico

The company focused on mapping waterways: Fishviews

Where is the company based? Wimberely, TX

Which waterways are being mapped? The 3 million miles of floatable waterways in the U.S.

What information does Fishviews track? 

• Above water images
• Below water images
• Water quality

Time Warner Cable News | Central Texas Startup Wants to be the ‘Google Street View’ of Waterways​

What’s been happening in Trans Pecos Pipeline lititgation?

• 6 landowners have won awards totalling millions
  • The awards amount to 30 TIMES the offers made to the landowners
• 1 case has been won by the pipeline company

Where’s the pipeline funding coming from?

• Mexico’s Federal Electricity Commission awarded an approximately $770 million contract to Energy Transfer Partners to build Trans Pecos Pipeline on U.S. soil

What issue about good faith negotiations has been raised by landowners?  

An ultimatium to ” take it or leave it” about an offer is not a good faith negotiation.

Fronteras | US To Mexico Pipeline: Unfinished Business In Ranch Lands Of West Texas

Which state representative & senator: James Frank & Donna Campbell

The 2017 legislative idea: restrict wind energy tax abatements near military facilities

What’s the motivation? 

• 2 wind farm projects are seen as a threat to pilot safety at Sheppard Air Force Base
• If the Air Force moves operations, that’s an estimated $750 million loss 

Times Record News | Rep. James Frank to file wind farm-related proposal

Recent editorial says the cost of abdandoned wells should be borne by companies and not by taxpayers. The solution(s)?

• Increase fines and fees at the Railroad Commission and at Texas Commission on Environmental Quality
• Raise the bonds required of drillers. The bond price hasn’t been raised since 1991.

Why is raising the bond rate justified according to the editorial?

• Texas Railroad Commission collectd $4 million in bonds from companies
• The number of abandoned wells is 1,500
• $million covers about 1/5 the cost of plugging the wells

Gainesville Daily Register | Reprint of Longview Daily Journal | Taxpayers should not be responsible for the cost of abandoned wells

Why are the American Academy of Pediatricians calling for more water lead testing?

• existing water testing requirements do not protect children
• the testing standard should not be the attainable amount of lead, but rather what level safely protects children
• when children test positive for high levels of lead in their blood, the harm has been done.

Where did the Academy make its June 20, 2016 statement? In a statement published Monday in the journal Pediatrics

Texas Public Radio | Pediatricians Call For More Testing And Tighter Rules On Lead Exposure

Which state has a constitutional right to farm on its November 2016 ballot? Oklahoma

What protections does it include?

“The Legislature shall pass no law which abridges the right of citizens and lawful residents of Oklahoma to employ agricultural technology and livestock production and ranching practices without a compelling state interest. Nothing in this section shall be construed to modify any provision of common law or statutes relating to trespass, eminent domain, dominance of mineral interests, easements.”

What do opponent claim is the intent of the constitutional amendment? 

• To allow a water rich protion of the state to sell water to water poor areas of the state and to neighboring state, Texas.
• The sale of water would also fill a budgetary shortfall in Oklahoma

The ADA News | Right to water? Right to Farm opponent expresses concerns about possible water grab from eastern Oklahoma if constitutional amendment is passed by voters

The Texas Supreme Court Opinion: Southwest Roaylties Inc. v. Glenn Hegar

How the ruling saved Texas Billions: 

• The Texas Supreme Court agreed with lower courts that Southwest Royalties did not qualify for a sales tax exemption on its products and services used for oil and gas exploration and production
• Southwest Royalties wanted a $500,000 refund
• The Comptroller’s Office indicated the total cost would be $4 billion for all refunds paid

What the lawyers say after the ruling:

• Issue isn’t closed.
• Other equipment may qualify for the sales tax exemption
  • If the equipment can be linked to processing, the exemption lives

Houston Chronicle | Sales tax ruling on oil field equipment saves Texas billions

Well Clean up by the Numbers:

• $165 million and counting
• 10,000 abandonded wells
• Well clean up costs are DOUBLE the Railroad Commission’s annual budget
• 12,000 abandonded wells are predicted

Dallas Morning News | Texas facing massive well cleanup costs after oil bust

• Lt. Gov. Patrick May 16, 2016 letter to FERC offered “strong support” for the LNG terminal plan at the Port of Brownsville
• Patrick’s rational for supporting the LNG terminal:
  • $1.3 billion investment by Texas LNG
  • $11 million annual increase in state and local tax revenue 
  • 100s of jobs
  • “needed outlet for the eco-rich supply of Texas natural gas”
  • will “prompt domestic economic growth”
• local governmental entities: cities, school districts and water districts have opposed the LNG plan

The Monitor | Patrick endorses Texas LNG

Which state legislature has formed a Pipeline study group to recommend eminent domain reform? Georgia in coordination with its year long prohibition on eminent domain by pipelines

What is required of the 13 members of the Pipeline Study Group?

• Between June- December hold up to 5 hearings
• Issue a report by December 31, 2016
• Examine whether petro-pipelines eminent domain powers are:
  • prudently exercised
  • responsibly conducted
  • consistent with the state’s essential public interest

Who sits on the pipeline study commission?

• 3 Senators
• 3 State Representatives
• The director of the Environmental Protection Division of the Department of Natural Resources or his or her designee
• The commissioner of community affairs or his or her designee;
• 5 Governor appointees, including:
  • 1 member representing the petroleum industry
  • 4 members representing a cross-section of the interests of local government, business, agriculture, and conservation.

Savannah Now | Pipeline study group forming in Georgia to look at eminent domain

The Port: Los Angeles

The renewable energy sources envisioned by the Port of Los Angeles: solar power and other low- or zero-emission energy sources, like:

• solar microgrid, which generates about 1 megawatt of energy
•  natural gas and “clean diesel
• a  “green omni terminal,” which will serve as a test case for zero-emissions and electric technologies at the port
• battery storage, charging equipment and an energy management system.

The planning timeline for moving to electric and zero emissions: 3 years of planning

My News Los Angeles | Going green at the Port: Cargo terminal will shift to renewable energy sources

The legislation: Requires utilities to contract for 1,200 MW of hyroelectricity & 1,200 MW of offshore wind to meet the state’s renewable energy goals

The state: Massachusettes

Utility Dive | Massachusetts House passes mandates for 1.2 GW each of offshore wind, hydropower

WCVB Boston | Massachusetts House approves bill to boost hydro, wind power

Ray Perryman group analyzed the economic impact of a Texas Supreme Court ruling in favor of Southwest Royalties. 

The informed intel:

• A ruling that allows the sales tax exemption for items used in the processing of oil and gas is consistent with Texas law
• Will pay dividends to the state for decades
  • Within 5 years, total state and local tax gains will exceed losses
  • Tax gains will be due to increased exploration due to lower costs
• The short term revenue hit to the state is lower than projected at $2.4 Billion

Gilmer Mirror | Study by Perryman Group Finds Texas Supreme Court Ruling in Favor of Southwest Royalties Would Provide Substantial Long-Term Economic Benefits to State

What cyber security threat could be helped by old school methods? Electric Grid Security

Who is proposing old school solutions? 4 U.S. Senators: King, Heinrich, Risch, Collins

What does the legislation call for? 

• 2 year study
• examinging technology that makes the grid vulnerable
• how the automated systems can be hacked remotely
• “reengineer the last mile of the energy grid  to isolate its most important systems”

The Hill | Senate bill would encourage ‘retro’ grid security approach 

What’s happening with appraisals of royalty owners? The Texas Royalty Council is communicating “a potential oil price miscalculation that could lead to royalty owners being over-appraised”

What calculation may be leading to a miscalculation of appraisals? A statewide appraisal services use an index that includes the price of West Texas intermediate crude oil.

Why does the Royalty Council say the use of the price of West Texas intermediate crude oil is contrary to Texas statutes? The Royalty Council opinion is that apparaisal, to be consistent with statutes, must use an average of actual sale prices, not the West Texas intermediate crude reference price

Longview News Journal | Texas Royalty Council red flags oil property appraisals

Where was the fracking ban imposed? Off the coast of California

Which governmental entity lifted the ban? The federal government

What did the feds say about the impact of fracking? “The comprehensive analysis shows that these practices, conducted according to permit requirements, have minimal impact,” –Abigail Ross Hopper, director of the Bureau of Ocean Energy Management

Governing | Ban on Fracking Off California Coast Lifted

• Mexico needs lots and lots of natural gas
• Permian Basin has lots and lots of natural gas
• New pipelines make distribution a breeze

Oil and Gas Investor | For Natural Gas, Mexico Can Be Permian’s New Best Friend

The 4 River Authorities:

• Sulphur River Basin Authority​
• Upper Colorado River Authority 
• Central Colorado River Authority
• Palo Duro River Authority of Texas   
•  

Which mid size Texas city had its 3rd boil water notice for water contamination? Corpus Christi

The reaction to the 3rd water contamination ntoice? City Council created a task force comprised of citizens, foregoing an outside consultant

The goals of the water contamination task force in Corpus Christi are:

• Determine the root cause analysis for the past three water boils
• Determine a plan of action for preventing future problems with the city’s water supply

kiiiTV | City Assigns Task Force to Investigate Water Issues

The Texas Supreme Court ruling for a Muleshoe ranch applies the accomodation doctrine to groundwater? Yes, the accomodation doctrine now applies to groundwater and to oil and gas.

What is the accomodation doctrine? It is the mineral owner’s right to use the land’s surface estate to drill for and produce minerals, or in this case, groundwater, with all due regard to the land owner.

Is this a good ruling for landowners? Yes, the Texas and Southwestern Cattle Raisers Association applauded the ruling as it “clarifies surface owners have protections against those who may own an interest in not only the mineral estate, but also the surface estate.”

Coyote Lake Ranch LLC v. City of Lubbock

Lexology |Pillsbury Winthrop Shaw Pittman |  When Contract is Silent, Accommodation Doctrine Applies to Water Rights Disputes

Lubbock Avalanche Journal | Texas Supreme Court: Oil and gas law can apply to water dispute for Muleshoe ranch

Is eminent domain on the table for the Vista Ridge Pipeline connecting to San Antonio Water System? YES

What does SAWS predict as a reason to say No to a Vista Ridge purchase offer? Rural lands that have been in a family for generations.

What does a landowner in the path of Vista Ridge say is his concern and reason he opposes Vista Ridge? His land’s water well drops. The background:

• This property owner’s water well dropped 17 feet when Blue Water, a member of the Vista Ridge Constorium, began pumping water in the area
• His well water dropped 20 feet in 1989 when Alcoa plant began operation

San Antonio Current | Landowners Who Resist the Vista Ridge Pipeline Could Face Eminent Domain Battle

Why tax wind? Coal forces accuse wind energy of shutting down coal as an energy source

What is the tax proposal? increase taxes on the renewable energy source to raise money for education by either:

• tax per megawatt hour of wind produced in Wyoming
• require wind companies to pay the state up to $12 per megawatthour of the production tax credit they receive from the federal government

Wyoming News | Wyoming lawmakers seek higher taxes on wind

Wyoming News | Proposed energy tax may threaten Wyoming wind project

Economic Opportunities in Mexico’s de-regulated energy market:

• Private investment opportunities in whole value chain in the hydrocarbons
• Private investment opportunities in electricity sectors 

3 Ways Mexico regulatory frameowrk will aid U.S. investors:

•  independent/autonomous regulatory bodies
• sufficient power/capacity to supervise foreign enrgy investment 
• total transparency in the tendering processes, contract licensing and permits awarding

Oil Voice | Reform leads to new value chain opportunities, says Mexico’s Energy Secretary

• Need oil prices at $75/barrel. Low Prices good for the consumer, but higher moderates the economic impact to Texas.
• Texas fortunes remain tied to oil and gas
• The Southwest Royalties lawsuit could impact state revenues by at least $4.4 billion

The News Port Arthur | Phelan gives Legislature preview

Which water district’s rates are being challenged by referndum? Yorba Linda California’s

What is the proposed rate hike? $25 per month per resident rate hike proposed to raise revenue lost during conservation requirements during the drought

What lessons about rate hikes have emerged?

• If you gather enough signatures for a referendum, Yorba Linda water district can still overturn the referendum
• Overturning a referendum, causes residents to move the matter to the courts
• Water district officials claim cutting costs and revenue at the district can lead to Flint, Michigan water contamnination crisis

Los Angeles Times | Yorba Linda legal fight turns nasty as residents seek to overturn water rate hike

A lawsuit has been filed against TIRZ #17 in West Houston.

What sparked the lawsuit? Flooding

What does the lawsuit allege? That the TIRZ gave special treatment to commercial developers that contributed to deterimental residential flooding.

Houston Business Journal | Citizens group files flooding-related lawsuit against city, TIRZ

KPRC | Flood victims sue city of Houston

Who is the TWDB’s new executive administrator? Jeff Walker 

When did he officially start? May 19, 2016

What’s his background?

• formerly the deputy executive administrator of Water Supply and Infrastructure at TWDB

• 25 year TWDB employees

• His other titles were in :

  • Project Development

  • Financial Assessment

  • financial analyst

  • agricultural conservation specialist

• MBA from Texas State University
• B.S. in  agricultural economics from Texas A&M University

TWDB | The Texas Water Development Board names Jeff Walker as executive administrator

The 2017 Texas Water Plan:

• Addresses Texas 70% population growth by 2070
• Contains 5,500 strategies to conserve & create additional water sources
• Significant Increase in Aquifer storage recovery
• Significant increase in direct potable reuse
• Capital Costs $62.6 billion
• Water providers will need $36.1 billion in state assistance

The goal is to stave off drought, the economic impact of which would:

• cost Texas 424,000 jobs
• decrease Texas gross domestic product of $73 billion 

KSO | Texas Water Development Board approves plan for 2017

Texas Water Development Baord | The Texas Water Development Board adopts 2017 State Water Plan

Does Attorney General Opinion KP-0089 open the door for river authorities to adopt regulations that prohibit the possession of firearms on river authority parklands?  No. Nej. Nien. Nyett. Never. Not. Going. To. Happen.

What river authority wanted to regulate firearms? The Lavaca- Navidad 

What kind of regualtion was the Lavaca Navidad River Authority considering? a regulation to address the “use, operation, management, administration, and policing” Authority’s water-related park areas 

Did the River Authority think the Parks & Wildlife Code permitted this? Yes, under Section 25.004 & 25.005, Texas Parks & Wildlife Code

The Attorney General said not so fast there special district, you’re not that special? Correct. The Penal Code and the Government Code trump the Parks and Wildlife Code on firearms.

What code sections could be amended to give the river authority that it wants to regulate firearms on its property?

• Penal Code Sections 46.03 and 46.035 to specify that park premises of a river authority are places where fire arms prohibitions may occur
• Parks and Wildlife Code Chapter 25 needs a specific authorization to permit a district to regulate handguns 
• Penal Code subsection 30.07(e) requires an exemption for article XVI, section 59 districts. 
•  

KP-0089

Which city is adding new Aquifer Recovery Storage? Victoria

What PROs does the City of Victoria count on with Aquifer Recovery Storage? 

• Aquifer Receovery Storage does not use surface space
• Aquifer Recovery Storage protects water from evaporation
  • Evaportation can take up to 90% of surface water

What tools is the City of Victoria using to build its Aquifer Recovery Storage>?

• reimbursable grant from the Texas Water Development Board
• 2-year, data-gathering process that can expand the project

Victoria Advocate | Council builds future with water-storage project

Which state supported living facilities have tested positive for lead in its water?

• Brenham
• El Paso
• San Angelo

Are we talking a lot of lead?

• “flint-like levels”
• The Brenham facility had lead levels 18times higher than permitted 

is this the 1st time there has been lead warnings for water in state supported living facilities? No, similar lead results occured in 2014 at the Austin state supported living facilities

KERA | Flint-Like Levels Of Lead Detected In Water At Three Texas Centers For The Disabled

Why did SAWs choose not to pursue SWIFT funding for Vista Ridge?  Funding milestones on the project were moved from Spring to Fall

Will SAWs puruse future SWIFT funding for Vista Ridge? Yes

What is the Vista Ridge project delay? 

• The Spanish company that promised to sell SAWs water filed for insolvency in Spain
• The Spanish company and the KS based construction company are in a power stuggle for control over the project
• Elected officials have also voiced concern over SWIFT funding for the pipeline. 
  • State Rep. John Cyrier
  • Lee County Judge Paul Fischer
  • Giddings Mayor John Dowell

San Antonio Express News | SAWS drops plan to secure state loan for Vista Ridge pipeline

What is an innovation hub for brackish water? the hubs test, evaluate, and streamline next generation water technologies to reclaim and reuse resources for residential, agricultural, industrial and utility interests

Where did the 2nd Innovative Demonstration Hub launch? El Paso in partnership with the University of Texas at El Paso, El Paso Water Utility, & the Hub of Human Innovation

What future desalination Hubs are on the horizon?

• South Texas/Rio Grande Valley (“Smart Irrigation Demonstration”)
• Greater Galveston (“Regional Innovation for Coastal, Industrial, and Residential Grand Challenges”)
• West Texas (“ Regional Innovation for Brackish Water, Aquifer Recharge, and the Future of Agriculture & Manufacturing”)

Investor Ideas | Innovative Demonstration Hub Launched for Brackish Desalination and Integrated Water Management, Leveraging Greater El Paso’s Regional, National, and Bi – National Expertise

Which lawmaker is proposing a move to a cabinet style government? Lyle Larson

Would this reduce the number of campaign fundraisers? Yes. It means no more campaigning specifically for Agriculture Commissioner, Land Commissioner, or Railroad Commissioner 

Senator Bettencourt’s response to the idea? it’ll face “stiff headwinds” in the Senate

San Antonio lawmaker seeks to boost governor’s power | San Antonio Express News 

From the City of Houston perspective:

• Houston City Council on May 11, 2016 voted unanimously to challenge CenterPoint’s plan to increase rates by about 65 cents a month for the average Houston resident
• The vote triggers a Public Utility Commission hearing in June
• Houston joins the Gulf Coast Coalition of Cities which has asked the PUC to block the increase

From CenterPoint Energy perspective:

• The rate increase covers transmission and technology upgrades
• This incremental increases helps avoid big rate spikes when a formal rate case occurs

Houston City Council challenges CenterPoint electric rate hikes | Houston Chronicle 

• In 2015, Senate Bill 757 repealed the crude oil petroleum tax
• In 2015, House Bill 7 dedicated the revenue from the crude oil petroleum tax
• The A.G. Opinion says the repeal holds. There is no crude oil petroleum tax to be levied in Texas.

KP-0085

Why is the Attorney General answering a question about local governmental entities regulating liquified petroleum gas?

• Chair Darby asked for an opinion on the effect of section 113.054 of the Natural Resources Code which states it preempts local regulations of LPG
• Chair Darby in his request mentions 2 local governments, home rule cities, that aren’t yielding to preemption

The Attorney General Opinion teaches us that home rule cities are permitted to:

• self-govern BUT the Legislature can limit this by acting with “unmistakable clarity”

The Attorney General answers whether the Natural Reources Code preempts home rule cities on LPG regulations by finding:

• Preemption is King. Generally, the existence of an unapproved local LPG provision would be preempted
• State Rules Are the Regulatory Ceiling. Local governments cannot enact less potent regulations
• Silent State Rules Preempt. When the state has not promulgated a LPG rule, local governments are restrained from adopting rules, because any local rule would immediately be more restrictive than no rule.
• No local Ordinances are grandfathered. Grandfathering in existing ordinances would frustrate the purpose of statewide regulation in Chapter 113, Natural Resources Code.

KP-0086 (The Attorney General Opinion that 86s local LPG rules)

On May 5th, The texas Water Development Board approved $32+ million in funding for these projects:

• $24,676,713 to the City of Cameron (Milam County) for wastewater and water system improvements 
• $6,345,000 to the Bastrop County Water Control and Improvement District No. 2 (Bastrop County) for water system improvements and the purchase of a wastewater system 
• $1,122,654 to the City of Wellman (Terry County) for water system improvements

Texas Water Development Board

An opponent of wind energy in Texas offered these arguments against wind energy at Midwestern State University:

• Wind energy projects will deplete rural property values
• Wind energy sucks up tax credits 
• Wind energy causes fluctuations in the power grid
• Wind energy is unreliable source because the wind doesn’t always blow

Witchita Falls Times Record | Speaker: Wind power industry a threat ‘in your backyard’

What pipeline is this that is heading into Mexico?  Trans Pecos pipeline that will run from Ft. Stockton into Presidio, Mexico.

What regulatory hurdle was cleared? The final stretch of pipeline that will run under the Rio Grande was approved by FERC

Are there pending lawsuits? Yes, the pipeline can being working while the landowner coaltion that has filed suit has its day in court for its eminent domain lawsuit

Texas Tribune | In Big Bend, Trans-Pecos Pipeline Clears Last Hurdle

Which company opened new Houston offices? The Scottish drone company Cyberhawk Innovations

What is Cyberhawk’s specialty? use of drones for aerial inspection and surveying

Which industries does Cyberhawk target? oil, gas, powerlines, wind and rail industries

Scotland’s The National | Drone firm Cyberhawk opens office in Texas

• 78% of Republicans favor clean energy generation
• How voters view clean energy sources:
  • 94% say yes to solar
  • 94% say yes to wind
  • 70% say yes to natural gas
• 1 in 7 Texans have seen, read, or heard about the federal Clean Power Plan
• 6 in 10 Republicans say Texas should  prepare a Clean Power Plan proposal now

Planet Save | Texas Republicans Like Clean Energy Reports New Survey

The Texas Railroad Commission Sunset Commission staff recommendations that are trending:

• Name Change. Sunset staff favors Texas Energy Resources Commission.
• Move contested case hearings. 
  • ​contested case hearing should move to SOAH
  • PUC should get natural gas utility oversight
• Industry Enforcement. Improve oil and gas monitoring & enforcement
• Increase Bonds for abandoned wells. Insufficient amounts to cover costs.
• Pipeline Safety. Improve oversight of pipeline infrastructure to improve public safety

Natural Gas Intel | Texas Railroad Commission Facing Another Sunset Review

Which state supreme court overturned a local fracking ban? Colorado

What was the court’s rational? 

• The local fracking ban is preempted by state law and thereby unenforceable and invalid
• Mineral owners could have missed out on profits
• Zoing authority of cities as it relates to fracking is still A-OK

If cities can still impose zoing restrictions on fracking, what does that mean for oil & gas?

• the city can forbid drilling in a residential zoned area, but
• the city can allow a driller to ask for an exception
  • The exception can be granted if it would be otherwise impossible to access mineral rights

Governing | Local Fracking Ban Struck Down by Colorado’s Highest Court

Wallstreet Journal | Colorado High Court Rules Local Bans on Fracking Are Illegal

When did the Texas Supreme Court give approval to statewide environmental enforcement over local environmental enforcement? On Friday April 29th

What was the case about?  A coalition of energy companies, operating refining facilities in the Greater Houston area, had sued the City of Houston over environmental licensing fees which were used to fund local environmental enforcement investigations.

What did the Texas Supreme Court say?  In a 8-1 ruling, the Court said the Legislature intended statewide enforcement & did not support local criminal penalties without a statewide determination that a violation had occurred.

Arkansas Online | Houston can’t make pollution laws, state court rules

• new pipelines are crossing the border
• a warm US winter left a record setting, 2.5tn cubic feet , of gas in US storage
• Mexico needs the gas to for power plants as Mexico seeks to reduce electricity rates

Financial Times | US shale gas producers bet Mexico is next bonanza

What group is working to integrate ethanol blends in Mexico’s rederegulated energy market? U.S. Grains Council

What sparked the ethanol and Mexico deregulation trend? In 2015, Pemex announced entring into the business of blending petrol and ethanol

Contract opportunities? Yes, because Mexico has only a small ethanol industry and Pemex is already in the business of awarding contracts

How will ethanol be delivered to Mexico? It will be exported from the U.S. by traditional transport or pipeline means

BioFuels International | USGC promoting US ethanol for Mexico’s energy policy reforms

Why are oil and gas companies turning to information technology?

• strategic spending in areas such as analytics, mobile, and cloud
• to lower costs
• to improve well production
• reduce costs
• make faster and better decisions
• increase workforce productivity

Wall Street Journal | Oil and Gas Companies Turn to Digital Technology as Low Energy Prices Pressure Business

What publication published this research from the University of Texas at Arlington? Science of the Total Environment in the article “Temporal Variation in Groundwater Quality in the Permian Basin of Texas, a Region of Increasing Unconventional Oil and Gas Development

What groundwater area was included in the research? The research was the first of its kind in the “Cline Shale region of West Texas before, during and after the expansion of hydraulic fracturing and horizontal drilling.”

Is the impact to groundwater system or variable? Variable. “some of the toxic compounds associated with areas of high unconventional drilling may degrade or become diluted within the aquifer over time”

Science Daily | Groundwater quality changes alongside expansion of hydraulic fracturing

“Charles Porter is a water rights and real estate expert and a visiting professor at St. Edward’s University. ” Porter also supports implementing a state water grid.

When was a water grid last proposed in the legislature? 2015

Did a water grid pass in 2015? No

Why is it important to prepare for a water grid before the need to move water requires it?

• Acquiring the right of way for water pipelines is a10+ year process
• Acquiring the right of way involves eminent domain & just compensation

Texas Trib + Water | The Q&A: Charles Porter

The American Petroleum Institute touts the $90 billion investment in innovation by oil & gas with these facts:

• Record high natural gas production led to over 61% reduction in emissions from power generation
• Low cost energy increases median American income by $1200 annually
• Low cost energy means American manufacturers beat Euorpean manufacturers by 10%-20% lower costs

Statesman | Gerard: Needless rules, regulations undermine economy, environment

Why does Austin want Smart Water meters? Austin residents don’t like surprise big water bills

What advantages does the CIty of Austin find with smart water meters?

• Smart water meters can alert property owners to leaks or large water consumption
• Can cut down on the need for the $3.6 million Austin pays outside contractors to read water meters each year

Statesman | Austin Water seeking $80 million for smart meters

Which Maryland County banned fracking? Prince George’s County

What was the vote? Unanimous by local officials

How far reaching is the ban? The ban applies to all areas of the county, including rural areas over the Taylorsville Basin

Maryland County First in State to Ban Fracking

Washington Post | Maryland county becomes first in state to say ‘no’ to fracking

When does Texas Water Development Board executive administrator Kevin Patteson officially become the general manager of the Guadalupe-Blanco River Authority? May 2nd

What 2 projects are in the GBRA near future?

• Texas’s first seawater desalination plant combined with power generation on the Gulf Coast
•  Mid-Basin Project that would divert and store water from the Guadalupe River in times of flood.

San Antonio Express News | Texas Water Development Board executive to head Guadalupe-Blanco River Authority

What property, with water rights, is offered for sale? Alcoa Inc.’s Sandow Lakes Ranch, 45 minutes east of Austin

How much water is available?

• 14 lakes covering
• 1,960 surface acres totaling 48,379 acre feet of water
•  44,000 acre feet of water, annually,  through the Simsboro Aquifer
• Additional 14,000 acre feet is available for permitting
• 18,000 acre feet of surface water diversion from the Little River

How much of the water rights are being sold? 100%

Dallas Business Journal | Alcoa Inc. puts massive Texas land holdings; water rights on market for $250M

• Water is 10% of the cost of drilling 
• Water is 2/3″ of monthly operating costs once the well is producing”
• 4 Ways Oil and Gas companies use Water:
  • Acquire clean water to use in the fracking process and drilling
  • Dispose of flowback water & produced water
  • Since 2013, oil & gas companies, can recycle water for fracking uses
  • Companies can purchase treated wastewater from municipalities, like in Odessa, TX
• Communities may have a better perception of companies that use recycled or wastewater
• A factor in oil and as company water use is risk avoidance, water contamination fines are steep

Rio Grande Guardian | PERRYMAN: OIL AND WATER

Which sate legislature is moving a new chemical production tax credit? Iowa

What is the tax credit for? Building production facilities that offer new uses for the co-products of biofuel production

Is the tax credit in existence in any other state? NO

What is the goal of the tax credit? To “attract inventors and manufacturers that will increase the value of the crops that we raise in Iowa”

Pilot Tribune (IA) | More important bills passed on Capitol Hill

• 28 Applications approved for prioritization
• $600 Million in funding for year 1
• $1.3 billion in funding for years 2-7 
• 8 conservation projects
• 4 rural projects
• 3 reuse projects
• 1 agricultural project
• May 11, 2016 final application deadline
• Late summer= Final funding recommendations
• Funding= by end of 2016

TWDB | Texas Water Development Board announces prioritization of projects for SWIFT

Which state legislature is moving a bill requiring a study of water storage? Colorado

What factors will be considered in the water storage study? 

• How much water is going out of state
• Reservoir necessity to accomplish

How will the study be funded? The $250,000 study would be funded with existing severance taxes.

What is Colorado’s statewide water plan goal? 400,000 acre-feet of municipal and industrial water conservation by 2050

Durango Herald | Water storage bill advances in Colorado Legislature

• American Wind Energy Association says wind energy construction is at a 3 year high
• 8,500 megawatts of wind power capacity was built in 2015
  • That’s 3 times the 2014 construction capacity 
• Wind energy capacity has increased by a factor of 6 in the last decade
• For 2016, 14,000 megawatts of wind turbines are either under construction or in the late stages of development

Fuel Fix | Wind energy construction rebounds across U.S., Texas

Mexico will be opening the following 3 new energy markets:

• more shallow-water Gulf of Mexico
• more onshore conventional fields
• shale drilling, once the country finalizes shale regulations

How has Mexico deregulation changed in the last few years? Mexican government has been actively seeking and utilizing input from private oil companies

San Antonio Express News | Mexico moving forward with energy reform

McClellan County is considering a county wide water system to:

• Slow groundwater depletion
• Allow water suppliers to cooperate to more easily weather droughts
• Solve arsenic contamination issues

Waco Tribune | Leaders eye countywide water system to slow groundwater depletion

What is the water pollution clean up initiateve called? Plum Creek Initiative

Who came up with the Plum Creek Intitiative? Grad students trying to the solve the problem of engaging rural farmers in a water quality initiative by invovling more women, who are the priamry or supporting operator of 25% of Minnesota’s farms

What are the goals of the Plum Creek Initiative? Pay rural women to:

• teach neighbors about water quality
• show rural neighbors how to reduce pollution on their own farms
• teach their rrual neighbors to test local bodies of water for pollution
• help farmers fill out paperwork to get government grants

Governing | Why Women Could Be the Key to Curbing Water Pollution

Why is it a problem that Texas has an abundance of renewable energy?

• its causing negative energy pricing when wind and solar produce power in peak quantities
• utilities have to pay grid operators to take power off their hands

Are there solutions to a glut of renewable energy?

• Ship the energy. Yes, Germany, which also had negative energy prices, makes $2billion per year exporting energy
• Store the energy. Large scale storage of excess energy, which isn’t possible yet.

MIT Technology Review | Texas and California Have Too Much Renewable Energy

What types of entities were in the more than 50% that contracted for wind power in 2015?

• major corporations
• universities
• major US cities

IS this an increase year over year?  Yes, in 2014 non-utilities contracted for 23% of the wind

Who is the source for this data? American Wind Energy Association

Morning Consult | AWEA: Non-Utility Customers Signed for More Than Half of Contracted New Wind Power Capacity in 2015

Which 4 groups are working to stop the SAWs Vista Ridge water pipeline?

• Clean Water Action
• Environment Texas
• Environmental Stewardship
• Save Our Springs Alliance

What argument do they make to stop the pipeline? That the project does not qualify for public funds

What key fact about the Vista Ridge Pipeline raises the concern over public funds?  That the project is a public-private partnership that is relying on public funds.

Do opponents think Vista Ridge created a shell corporation? Yes, opponents to the pipeline believe that Central Texas Regional Water Supply Corporation is a shell corporation that is controlled by private interests which will benefit from a public funding mechanism.

Is the Vista Ridge Pipeline in the final round of SWIFT funding?  The April 11th agenda for the TWDB indicates that Vista Ridge will not get SWIFT funding this year.

Texas Public News Service | Environmental Groups Fight Proposed Texas Water Pipeline

Texas Tribune | Vista Ridge Pipeline Opponents Win Small Victory

Who- Which company wants to build a new LNG export terminal at the Port of Brownsville? Texas LNG

What stage of the process is the new LNG facility? A FERC application was made public on March 31, 2016

Where will the new facility be and how will product get to it?  

• Export terminal would be shipped via a proposed 150-mile pipeline
• Connecting the already-existing Agua Dulce hub  west of Corpus Christi to the Port of Brownsville
• It will ship product to customers in Latin America, Europe and Asia.

What is the business goal here? 

• natural gas from the Eagle Ford Shale region
• Texas LNG will build a 2-phase 4 million metric tonnes per annum export facility

Houston Business Journal | Houston LNG co. files to build export terminal in South Texas

Center Point Energy Comapny President & CEO Scott Prochazka offered these insights into regulation of the Texas grid:

• Texas still needs more transmission lines
• Texas lawmakers have not imposed the renewable energy, electricity buyback or efficiency requirements found in other states
• the rules need to be dealt with so that transmission lines can “access the technology as long as it’s good for the system”
• Current rules say if solar or energy storage goes up, the rates on the lines will go up

In Chicago, transmission lines take this approach: 

• “need an energy system that is cleaner, leaner, ultra-reliable”
• Grid needs to meet millenial needs of  “customized, connected and communal”
• The grid is more important with solar and battery energy storage
• The goal is to have as many uses as possible for the grid such as “facilitating energy sellers and buyers, and companies that work for them, using the grid’s connectivity and potential to provide data.”

Houston Chronicle | Electric grid business is changing, and regulations should, too

Houston Chronicle | Electric grid business is changing, and regulations should, too

Which water district is facing an election dispute? the Pritchett Water Supply Corp.

What are the allegations of election fraud?

• When the ballots were examined unopened ballots remained.
• The ballot box at the company head quarters was unattended for weeks.
• No oversight for mail-in ballots, which were mailed to the water district “company” headquarters

What 2017 legislation is on the horizon? Statewide election rules for special districts

Longview News Journal | Water board election disputed

What award did the Lt. Gov. receive? 2016 Public Leadership in Energy & Environmental Stewardship Award

Who gives out this award? National Lieutenant Governors Association in partnership with GE

What does the award receogize? an official who played a key role regarding energy and environmental stewardship, enhancing the lives of constituents and positively impacting every aspect of American life.

What energy sector did Lt. Gov. highlight in his remarks? Natural Gas

Office of the Lt. Governor | LT. GOVERNOR PATRICK RECEIVES 2016 PUBLIC LEADERSHIP IN ENERGY & ENVIRONMENTAL STEWARDSHIP AWARD

Want to know about drinking water safety in Texas? TCEQ has a searchable database tool just for you.

TCEQ Texas Drinking Water Watch 

Which texas companies were certified under the new drone certification system in Texas? HUVRdata (Austin) & Aviation Unmanned (Addison)

What entity does the drone certification? Texas A&M University System via its Corpus Christi campus and its engineering extension service

How is industry using drones?  wind-power, oil and gas and transportation industries to provide aerial inspections and mapping, and for port and border security and coastline monitoring

Houston Chronicle | First two Texas companies credentialed for drone operations

• The increased human activity (oil & gas) raises OK, TX, and KS earth quake forecast to that of California.  Yes, Texas = California.
• An additional 7 million Americans are at heightened risk
• The order of the states most likely to experience earthquakes from human activity, in order, are:
  • Oklahoma
  • Kansas
  • Texas
  • Colorado
  • New Mexico
  • Arkansas.

Houston Chronicle | USGS forecasts high earthquake risk linked to oil and gas activity

NY Times | Drilling Is Making Oklahoma as Quake Prone as California

WFAA | USGS: North Texas quake risk on rise

WallStreet Journal | Earthquake Risk Increased in Energy-Intensive States, USGS Says

USGS Study

• Year over year job growth is up. 1.6% from January 2016 to January 2015, compared to 1.3% the previous year.
• Hospitality industry led job growth.
• Job growth in education was next, followed by job growth in health services, construction, financial activities.

Bryan College Station Eagle | Texas A&M research: State making slow, steady recovery from oil price collapse 

What’s the big news on the Texas side of Mexico deregulated energy market?  Rangeland’s Energy’s South Texas Energy Products System terminal for  Refined products and LPG

Where will the new terminal be located? Corpus Christi

How will the terminal be serviced? service includes rail service and the development of inland rail unloading terminal alternatives located on the KCS mainline in Mexico.

NGI Shale Daily | Texas Terminal to Be Hydrocarbon Bridge to Mexico

Where did a state representative’s email cause a stir with a city council? Osceola Iowa

What did the representative say in this email? 

• The state representative’s committee “has issues” with the reservoir
• Raised a compromise of fixing 2 existing reservoirs in lieu of a new reservoir
• The Rep. strongly opposes the use of eminent domain for the reservoir

Osceola Sentinel Tribune | Kaufmann email leaves city council rankled

The U.S. Justice Department arrested invididuals that attempted to break into a small dam to disrupt operations. The informed intel:

• 1st time someone has been charged with disrupting, or attempting to disrupt, critical U.S. infrstructure. 
• The charges are” cyber myham” to disrupt the water infrastructure. 

Washington Post | U.S. charges Iran-linked hackers with targeting banks, N.Y. dam 

What’s this Technical Advisory Committee to the Bureau of Economic Geology at The University of Texas at Austin? It was created by HB 2 in 2015. It will:

• Advise the Bureau of Economic Geology on the use of funding
• Advise on the TexNet Seismic Monitoring Program
• Advise on collaborative research relationships with other universities in Texas
• Prepare a status report to the Governor and Legislature.

So, who are the appointees?

• Dan Hill– Stephen A. Holditch Department Head Chair of the Harold Vance Department of Petroleum Engineering at Texas A&M University
• Chris Hillman- city manager for the City of Irving
• Dana Jurick – manager of Seismic Analysis for the Geoscience and Reservoir Engineering Organization at ConcoPhillips Company
• Hal Macartney- geoscience manager of Sustainable Development for Pioneer Natural Resources
• Chris Nygaard– senior stimulation consultant for ExxonMobil Upstream Research Company
• Chris Pearson– State Seismologist for the Railroad Commission of Texas
• Brian Stump– Albritton Chair of Geological Sciences at Southern Methodist University
• Scott Tinker– State Geologist of Texas, director of the Bureau of Economic Geology, acting Associate Dean of Research and Edwin Allday Endowed Chair of Subsurface Geology and professor at The University of Texas at Austin Jackson School of Geosciences
• Robie Vaugn– (CHAIR) Vaughn Capital Partners, LLC

Governor | Governor Abbott Names Chair And Appoints Nine To The Technical Advisory Committee To The Bureau Of Economic Geology

Why did the State fired the Texas Habitat Conservation Foundation, a group created to implement west Texas lizard protection? 

• It failed to do any habitat restoration work 
• It failed to monitor drillers & landowners “to ensure they were performing conservation measures to protect the dunes sagebrush lizard”

What did the director of the Kay Bailey Hutchison Center for Energy, Law and Business at the University of Texas say about this private lizard protection effort? It needed more transperancy in who was involved and what they were doing.

What does the private entity that was formerly charged with protecting the lizard say? Its a disagreement over what constitutes mitigation

What entity replaced the Texas Habitat Conservation Foundation? Bio-West, a subcontractor of the Texas Habitate Conservation Foundation

Statesman | State fires organization formed by Big Oil to manage threatened lizard

Landowner groups tout Nebraska’s LB 1082 as:

• Requiring periodic sampling and reporting of fracking waste fluids, and monitoring of produced water transporters in Nebraska.
• Requiring periodic evaluation of financial assurance for companies engaged in fracking waste disposal.
• Local Notices Required for WasteWater Injection Wells. Requires notification of counties, cities, villages and natural resource districts of fracking wastewater injection well applications.
• Reducing the “promotional” aspect of the Nebraska Oil & Gas Commission, and refocuses the agency’s purpose on promoting health, safety and protection of natural resources.

Nebraska LB 1082 was sent to the Governor on March 24, 2016.

Bold Nebraska |ACTION: Protect our Water Against Fracking Waste—Support LB 1082

• 25 feet minumum on setting of well surface casing below the base of usablequality water
• Mandated groundwater protection for each new well
• Inspections, Compliance, and 24/7 emergency response
• Require clean up of spills that to protect water resources
• Prevent spills and blowouts with requirements of drilling, casing, cementing, well control & fracture stimulation
• Mandate public disclosure of chemicals & water volumes in fracking
• Environmentally sound oilfield waste disposal 
• Recycling of oil and gas fluids to reduce contamination
• Ground Water Protection Council  & Ground Water Protection Committee coordination
• Interstate Oil and Gas Compact Commission

Texas Rail Road Commission | How RRC Protects Groundwater

Who is asking for an Attorney General opinion? Jim Hogg County Attorney 

What question does the County Attorney  want addressed by the opinion?  Whether the Water Code prohibits someone from the County Attorney Office from serving on the board of a Water Control and Improvement District that the Couty Attorney serves.

RQ-0102-KP

TWDB bonds got a high rating from Fitch because

• Texas state debt is low
• texas economy is large and diverse

Business Wire | Fitch Rates Texas Water Development Board’s $43MM GO Bonds ‘AAA’; Outlook Stable

• California Public Employees’ Retirement System will  require corporations it invests in to have board members “who have expertise in climate change risk management strategies”
• CALPERS is the first pension system to take this step
• Its a new step, usually a pension system divests from controversial interests

Governing | Pension Fund Takes Unprecedented Climate Change Action

What is this new tax when land is taken by eminent domain? Maine’s HB 1660 applies a land use change tax to land taken by eminent domain. 

In theory, land not taken by eminent domain could not be subject to the tax, which could serve as a means to encourage negotiation.

Nashau Telegraph | House approves pipeline measures

A candidate for governor of the border state of Tamulipas is proposing a “Tamaulipas trade office” in San Antonio to promote more cross-border commerce.

Goals of the San Antonio trade office:

• connect entrepreneurs from both sides of the border
• provide assistance to Tamaulipas natives
• promote entrepreurship on both sides fo the border

His view on Texans: Texans have the technology and the experience

San Antonio Business Journal | Mexican senator eyes ‘Tamaulipas trade office’ for San Antonio

The State: Arizona

The regulators who should have less disclosure of conflicts of interest: The state utility commissioner

The reason why:  The previous utility commissioner had to resign because of a conflict of interest over her son-in-law working at a Solar Company.

The new conflict of interest disclosures for the utility commissioner, are they unheard of standards? No, its the same conflict of interest standard as lawmakers in Arizona

Utility Dive | Arizona lawmakers mull changes to conflict-of-interest law for utility regulators

What state is proposing an eminent domain ban for transmission lines? Missouri

Is this all transmission lines or just privately owned transmission lines?  The ban includes privately funded, long distance, Direct Current transmission lines.

Why this legislative response? 

• Missouri Publiuc Service Commission denied eminent domain to a private transmission line that would traverse Missouri but not provide electic service in Missouri.
• The power line project was opposed by land owners, farmers, and 8 of the counties the that would have been home to the power line project. 

Missouri HB 2418

Missouri SB 1107

The Caldwell County News | Eminent Domain Reform Bill Proposed In Missouri

• Construction began March 9th on the 1st of its kind no emission gas power plant in La Porte
• It is a 25-megawatt pilot project
•  Will send the carbon dioxide into a sequestration pipeline that can then either:
  • Be stored -OR-
  • Be used for industrial purposes or enhanced oil recovery
• Its a project by Net Power, a collabortation among:
  • Chicago-based Exelon Corp.
  • The Woodlands’ CB&I
  • North Carolina-based 8 Rivers Capital technology commercialization firm
• From the CEO:
  • “Net Power is the first technology that allows policy and economics to work together, instead of against each other, to ensure the world meets our climate targets,” said Net Power CEO Bill Brown

FuelFix | 

Why did a water district get fined by the SEC? A California water district saw declining revenue in the drought that led to shifting expenses to the incoming revenue side of the ledger.  

Why did the water district shift expenses to income? The accouting gimick needed to show that the water district had sufficient revenue to cover the bond debt payments. Thereby misleading investors.

Could a state agency fine a water district’s investment pitch? Yes. State agencies have regulatory authority over investments. 

Governing | California’s Largest Water District Settles With SEC Over ‘Enron Accounting’

Sacramento Bee | Major Valley water district settles with SEC

• In 2015, the U.S. brought more solar capacity online than natural gas
• In 2015, Texas installed 207 MW of solar electric capacity, making it #9 nationally
• In 2015, the U.S. installed 7,260 MWdc of solar PV 
• For total solar capacity, Texas ranks #10 with 534 MW of solar energy
• The Solar Energy Industries Association says Texas will rise quickly with the new utility-size projects that are in the planning stages

Dallas Morning News BizBeat | Why the sun-drenched state of Texas isn’t No. 1 in solar energy

What’s triggering this? Sabine Oil Company is seeking bankruptcy protection. In the bankruptcy proceedings, a judge in Manhattan determined that the pipeline contracts can be set aside & Sabine can get out of the contracts.

Is the bankrptucy judge’s ruling the end of this saga? No, the bankruptcy ruling isn’t binding. The judge further says that the pipeline contracts are governed by Texas Law.

What’s this business about Texas law being unsettled on this issue? The bankruptcy judge called this issue, whether the piepline contracts are tied to the land and thus not excusable in bankruptcy court, is unsettled in Texas law. 

Hello 2017, the legislative drafters are busy. Its a huge deal for the midstream industry.

Market Watch | Sabine Oil & Gas may reject pipeline contracts

Oklahoma regulators enacted new rules concerning earthquakes, quakes, ground rattlers. let’s see what’s going on with our neighbor to the North.

• What regulation was passed? A 40% reduction in oil and gas wastes injected into the earth in 52,000 square miles in Central Oklahoma
• Why the Central Oklahoma geographical limitation? The area has seen 6 years of consistent earthquake and seismic events
• Why is Oklahoma enacting “sweeping restrictions on oil & gas? Last year OKlahoma had 907 earthquakes above 3.0

NYTimes | Oklahoma Puts Limits on Oil and Gas Wells to Fight Quakes

EagleFordTexas.com | Oklahoma regulators release plan to reduce temblors